The Fund’s sole objective is long term capital growth. It invests wholly or predominantly in a wide range of South-East Asian (including Australasian) securities. When not wholly invested as above, the Fund may also invest in other companies which are listed or trading within this area. The Fund will not, however, invest in Japanese securities. Income is not a consideration when investments are selected.

Corporate Bond Fund

Objective change

1 September 2008

The Fund invests in sterling denominated fixed and variable rate securities, including corporate bonds and debentures with the aim of achieving a higher return from investment than would be obtainable in UK government fixed interest securities (i.e. gilts) of similar maturities. The Fund may, however, hold gilts where it is deemed appropriate. The investment manager has the power to use futures traded or dealt on an eligible derivatives market (currently being The London International Financial Futures and Options Exchange) for the purpose of hedging the capital value of the Fund against the risks of adverse movements in long term interest rates. More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State* other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.

* Member State: those countries which are members of the European Union or the European Economic Area at any given time.

Corporate Bond Fund

Objective change

25 May 2017

The Fund aims to achieve a higher total return (the combination of income and growth of capital) from investment than would be obtainable in UK government fixed interest securities (ie gilts) of similar maturities.

Emerging Markets Bond Fund

Objective change

1 September 2008

The Fund aims to maximise total return primarily through investment in bonds issued by emerging market nations* and their agencies, though the Fund can also hold a proportion of its portfolio in other debt instruments. There are no restrictions on the currency in which bonds held in the portfolio may be issued, and accordingly the Fund may carry a greater than usual currency risk, which will not normally be hedged.
More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State** other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.

The Fund invests mainly in investment grade corporate bonds denominated in any European currency, as well as in European currency denominated high yield corporate bonds and government and other public securities. The Fund aims to maximise total return (the combination of income and growth of capital) while generating a higher level of income than that from European government bonds of similar maturities.

European Corporate Bond Fund

Objective change

25 May 2017

As a result of the Swiss National Bank removing the currency peg since the balance sheet date, 31 December 2014, the Net Asset Value per share of the Swiss franc share classes has increased by approximately 12% to 12 February 2015.

European High Yield Bond Fund

Objective change

1 September 2008

The Fund aims to maximise total return while providing investors with a high level of income, though this may vary. The portfolio may consist of bonds denominated in any European currency. The Fund may invest in corporate bonds as well as government and other public securities. While the investment manager has the power to hedge the currency risk for UK investors, the Fund will normally be managed so as to give investors exposure to European currencies. More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State* other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.

* Member State: those countries which are members of the European Union or the European Economic Area at any given time.

European High Yield Bond Fund

Objective change

25 May 2017

The Fund aims to maximise total return (the combination of income and growth of capital) while generating a high level of income.

European Select Fund

Objective change and name change from European Fund

6 November 2015

The Fund’s prime objective is long term capital growth. It invests wholly or predominantly in a diversified portfolio of securities of European (excluding United Kingdom) issuers. When not wholly invested as above, it may also invest in companies which are listed or registered outside Europe but trade within it. Income is of secondary importance when investments are selected.

Global Dividend Fund

Objective change

25 May 2017

The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long term whilst also maximising total return (the combination of income and growth of capital).

Global Growth Fund

Objective change and name change from International Growth Fund

19 September 2008

The Fund invests in a wide range of international equities (excluding UK) with the sole objective of capital growth. The geographical split of the portfolio will vary according to market conditions.

The Fund aims to maximise total return through investment in a portfolio of high grade fixed interest (including floating rate) securities denominated in non-sterling currencies. The portfolio will primarily consist of sovereign debt securities denominated in the currencies of the major industrialised nations, with the exception of the UK. While the investment manager has power to hedge the currency risk for UK investors, the Fund will normally be managed so as to give exposure to non-sterling currencies.
More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.

Objective change and name change from International Sovereign Bond Fund

4 July 2014

The Fund aims to maximise total return (the combination of income and growth of capital) through investment in a portfolio of investment grade debt instruments.

Global High Yield Bond Fund
(formerly High Yield Corporate Bond Fund)

Objective change

Note - there was a change of fund name on 8 August 2014. No change to the objective on this date.

1 September 2008

The Fund invests predominantly in higher yielding fixed and variable rate securities, including corporate bonds and debentures. The Fund is designed to maximise total return while generating a high level of income. In addition to sterling denominated securities, the portfolio may include gilts and securities denominated in other European currencies, US dollars or yen, should the investment managers deem these to be appropriate investments. The sterling based nature of the investor base will be considered at all times. The investment manager has the power to use futures traded or dealt on eligible derivatives markets (currently being The London International Financial Futures and Options Exchange) for the purpose of hedging the capital value of the Fund against the risks of adverse movements in long term interest rates. Any currency exposures within the Fund may be managed by forward currency hedges into sterling.

Global High Yield Bond Fund
(formerly High Yield Corporate Bond Fund)

Objective change

25 May 2017

The Fund is designed to maximise total return (the combination of income and growth of capital) while generating a high level of income.

Global Macro Bond Fund

Objective and name changed from the M&G Global Managed Bond Fund.

16 January 2007

The Fund is an actively managed fund of funds investing in M&G’s wide range of fixed interest authorised collective investment schemes. The Fund is designed to maximise total return (the combination of income and growth of capital) while providing a significant level of income, though this may vary."

Global Select Fund

Objective and name changed from the M&G Global Growth Fund.

6 November 2015

The Fund invests principally in the equities of UK companies with high growth potential with the sole objective of capital growth. Income considerations are ignored.

Global Select Fund

Objective change

17 November 2017

The fund aims to provide income and capital growth over five years or more by investing mainly in a range of company shares from anywhere in the world.

Global Themes Fund

Objective and name change from M&G Global Basics Fund

17 November 2017

The fund aims to grow capital over five years or more.
Core investment: At least 70% of the fund is invested in the shares of companies from anywhere in the world that operate in primary industries (such as mining and agriculture) and secondary industries (such as manufacturing), and also in companies that service these industries.
Other investments: The fund may also invest in the shares of companies from other types of businesses. Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund manager focuses on shares in companies that operate in primary industries (such as mining and agriculture) and secondary industries (such as manufacturing), and also in companies that service these industries. The emphasis is to identify and exploit investment themes that are likely to be the key long-term drivers of growth and select those companies best equipped to benefit from these themes. The fund manager follows a high-conviction global equity strategy which seeks to deliver long-term capital growth.

North American Dividend Fund

Objective and fund name change from American Fund

28 April 2015

The Fund’s objective is long term capital growth through investment wholly or mainly in securities of North American (including Canadian) issuers. When not wholly invested as above, it may only invest in companies which are listed, registered or trading within North America.

North American Dividend Fund

Objective change
(American Fund)

24 March 2006

The Fund’s sole objective is long term capital growth from a well spread portfolio of North American investments, predominantly in larger companies. It may also invest in Canada, and in other companies which are listed, registered or trading within North America. Income is not a consideration when investments are selected.

Pan European Dividend Fund

Objective change

25 May 2017

The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of European equities. The Fund aims to increase distributions over the long term whilst also maximising total return (the combination of income and growth of capital).

Pan European Select Fund

Objective and fund name change from Pan European Fund

6 November 2015

The Fund invests wholly or mainly in European (including UK) companies. The Fund may also invest in companies outside Europe but only when these companies derive the majority of their income from European activity. The objective is to maximise long term total return (the combination of income and growth of capital).

Pan European Select Fund

Objective change

17 November 2017

The fund aims to provide capital growth and income over five years or more by investing mainly in a range of company shares from across Europe, including the UK.

Pan European Select Smaller Companies Fund

Objective and fund name change from European Smaller Companies Fund

25 May 2018

Objective
The fund aims to grow capital over five years or more by investing mainly in the shares of smaller companies from across Europe, including the UK.Investment policy and strategyCore investment: At least 70% of the fund is invested in the shares of companies that make up the bottom third of all publicly listed firms in Europe, in terms of their stockmarket value.Other investments: The fund also invests in medium and larger companies to enhance its liquidity (its ability to raise cash quickly).Strategy in brief: The fund manager invests in the shares of companies deemed to be of quality and with sustainable business models, where an element of change is helping to drive their value, and short-term issues have created attractive buying opportunities.
The fund manager keeps the fund concentrated, generally holding fewer than 50 well-understood stocks, with a typical holding period of three to five years. The fund may invest across a wide range of industries. The fund manager maintains a balance of stocks with different risks and rewards to build a fund that has the potential to cope in a variety of market conditions. Income is not a top priority when choosing investments.

Recovery Fund

Objective change

1 March 2019

The fund aims to grow capital over five years or more by investing predominantly in the shares of companies that, at the time of investment, are out of favour with the stockmarket, and where the fund manager believes a good management team is making concerted efforts to turn the business around.
Core investment: At least 80% of the fund is invested in the shares of companies. Currently these are predominantly UK-listed companies.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund invests in those businesses whose problems are solvable and temporary rather than structural in nature, and which are expected to move through a recovery cycle. This is a relatively simple investment approach focusing on three key factors: people, strategy and cashflow. Developing a constructive dialogue with company management is fundamental to the investment process. The fund manager takes a long-term view with a typical holding period of five years or more.
Performance measurement: The fund is actively managed. The FTSE All-Share Index is a point of reference against which the performance of the fund may be measured.

Short Dated Corporate Bond Fund (formerly High Interest Fund)

Objective change

1 September 2008

Designed to provide income with stability of capital by investing in fixed interest securities which fit the purposes of the Scheme. These may include (but are not restricted to) floating rate notes, gilts, Treasury Bills and other instruments traded on the London Discount Market. More than 35% of the value of the property of the Fund may be invested in government and other public securities issued by the Government of the United Kingdom (including the Scottish Administration, the Executive Committee of the Northern Ireland Assembly and the National Assembly of Wales). The investment manager will hedge the property of the Scheme against fluctuations in price as and when they consider it appropriate with a view to achieving stability of capital. When entering into hedging, transactions are likely to be by way of traded futures and options although over-the-counter transactions may also be used.

Short Dated Corporate Bond Fund

Objective change

13 March 2018

Objective:
The fund aims to provide income with stability of capital over three to five years. There is no guarantee that the fund will achieve this objective over any period. The income distributions and the value of your investment may rise and fall and you may not get back the amount you originally invested.
Core investment:
At least 70% of the fund is invested in bonds. Typically, these bonds are issued by companies due to be repaid within three years and floating rate notes. The fund holds these assets directly and through derivatives.
Other investments: The fund also invests in bonds issued by governments (usually of developed countries) and high yield bonds. In some market conditions, the fund may have a high proportion invested in liquid assets (that is, assets that are easy to sell, such as cash).
Use of derivatives: Derivatives may be used to gain exposure to the fund’s core and other investments, to reduce risks and costs and to manage the impact of changes in currency exchange rates on the fund’s investments.
Strategy in brief: Credit research is at the heart of the fund's investment process. The fund is well diversified and maintains a short duration, or low sensitivity to changes in interest rates, in order to minimise the impact of interest rate movements on the fund's capital value. The fund manager believes this can best be achieved by selecting bonds that pay a variable rate and bonds that have a short repayment date.

UK Select Fund

Objective and fund name change from UK Growth Fund

6 November 2015

The Fund invests principally in the equities of UK companies with high growth potential with the sole objective of capital growth.

UK Select Fund

Objective change

1 March 2019

The fund aims to grow capital over five years or more by investing predominantly in the shares of companies that, at the time of investment, are out of favour with the stockmarket, and where the fund manager believes a good management team is making concerted efforts to turn the business around.
Core investment: At least 80% of the fund is invested in the shares of companies. Currently these are predominantly UK-listed companies.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund invests in those businesses whose problems are solvable and temporary rather than structural in nature, and which are expected to move through a recovery cycle. This is a relatively simple investment approach focusing on three key factors: people, strategy and cashflow. Developing a constructive dialogue with company management is fundamental to the investment process. The fund manager takes a long-term view with a typical holding period of five years or more.
Performance measurement: The fund is actively managed. The FTSE All-Share Index is a point of reference against which the performance of the fund may be measured.